RDM Corporation Reports Fiscal 2013 Third Quarter Results

WATERLOO, ON, July 25, 2013 /CNW/ - RDM Corporation (TSX:RC), a leader in remote deposit capture (RDC) solutions, today reported its financial results for the three month period ended June 30, 2013. All figures are reported in U.S. dollars unless otherwise stated.

Q3 2013 Highlights

Total revenue was $6.1 million in Q3 of fiscal 2013, a 17% increase compared to $5.2 million in Q3 2012, and a 12% increase compared to Q2 2013.

Payment Processing Services revenue was $3.5 million, up 17% from $3.0 million in Q3 2012.

Revenue for Digital Imaging Products was $2.6 million, 14% above the same quarter in 2012.

Gross profit was $3.2 million or 53% of revenues in Q3 2013, compared to $2.7 million, or 53% of revenues in Q3 2012.

The Company ended the quarter with 30,950 end user seats, an increase of 13% from one year earlier.

Adjusted EBITDA was $1.1 million, up 60% from $713,000 for the same period last year.

Operating income for the quarter was $744,000, up 103%, compared to $366,000 for the same period in 2012.

The Company recorded one-time charges of $2.2 million to reflect a litigation settlement, including a $1.4 million cash payment made during the quarter.

The net loss for the quarter was $1.5 million, or ($0.07) per share, compared to net income of $728,000, or $0.03 per share last year. Despite a $1.4 million settlement-related cash payment, the Company generated $373,000 in cash during the quarter and ended the period with a closing cash balance of $19.2 million.

Nine months ended June 30, 2013 Highlights

Revenue is up 10% to $16.3 million, compared to the nine months ended June 30, 2012, driven both by Payment Processing Services (up 14%) and Digital Imaging (up 4%).

Gross Margin is up to 54% from 51% for the nine months ended June 30, 2012.

Operating income is up 255% to $1.4 million, driven by revenue growth and relatively stable operating expenses.

Adjusted EBITDA for the nine months ended June 30, 2013 is $2.5 million compared to $1.4 million in the same period in 2012.

The one-time charge of $2.2 million related to settlement of litigation resulted in a net loss of $1.2 million, compared to net income of $1.1 million for the same period last year.

"We are very pleased with our results this quarter." said Randy Fowlie, President and CEO of RDM. "Revenue is up 17% over the prior year driven by strong market acceptance of both our Payment Processing Services and Digital Imaging businesses. In addition, operating income was $744,000, up 103% over the prior year. The litigation with PPS Data was settled this quarter. Excluding the $1.42 million cash payment related to the litigation, we generated $1.8 million in cash from operations. We are well positioned to take advantage of growth opportunities in the future."

Conference Call RDM will be hosting a conference call to discuss the Company's second quarter results on July 25, 2013 at 9:00 a.m. EDT. Dial-in numbers are 647-427-7450 or 1-888-231-8191. The call will be webcast live and archived at www.rdmcorp.com. Detailed financial results and Management's Discussion and Analysis ("MD&A") will be filed on www.sedar.com.

Non-IFRS Measures Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for foreign exchange gains and losses, stock-based compensation and one time charges) is provided to assist management and investors in determining the Company's approximate operating cash flows before interest, income taxes, and depreciation and amortization. Adjusted EBITDA does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management believes that RDM shareholders and potential investors in RDM use non-IFRS financial measures such as Adjusted EBITDA in making investment decisions about the Company and measuring the operational results. A reconciliation of Adjusted EBITDA to net income determined in accordance with IFRS is provided in the Company's MD&A.

About RDM Corporation RDM Corporation is a provider of Remote Deposit Capture (RDC), integrated receivables and payment processing solutions designed to help clients simplify the way they do business. RDM processes over $600 billion in annual payments and helps corporations and financial institutions increase revenue, expand marketshare and improve customer service for over 30,000 end-users. Our solutions are utilized at 5 of the top 10 financial institutions in the United States and serve 32% of the top 100 Fortune 500 companies including brokerage firms, big box retailers, healthcare and insurance providers, and government entities.

For over twenty five years, RDM has worked with clients to provide both software and hardware solutions including transactional data management, web-based and mobile RDC for large corporate clients and small businesses, and manufactures a wide range of digital imaging scanners. RDM was recently named to the Branham300 list, which highlights the top Canadian and multinational companies servicing the Information and Communication Technology (ICT) marketplace. To learn more visit www.rdmcorp.com.

This news release contains forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RDM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RDM believes are appropriate in the circumstances. Many factors could cause RDM's actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. Risk factors relating to RDM are discussed in the Risks and Uncertainties section of RDM's Annual Information Form and year-end Management's Discussion and Analysis. These factors should be considered carefully, and readers should not place undue reliance on RDM's forward-looking statements. RDM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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RDM Corporation provides large financial institutions with Remote Deposit Capture (RDC) solutions designed to help their clients simplify the way they do business. RDM processes over $600 billion in payments annually and helps financial institutions increase revenue, expand...